How Did The Price Of Gold Change From 1970 To 2023? For FX:XAUUSD By Sroshberwary_fx – WorldNewsEra

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Despite gold’s status as a long-term investment commodity, its value has declined several times. The periods of highs and lows coincided with difficult political and economic developments – investors’ demand for gold as a safe haven rises when there are problems in the global economy, and weakens when things are going well. What can we learn from the past to be able to make predictions for the future? Gold is priced on a standard scale per ounce. 1 ounce = 31.1 grams 1970 – The average price of an ounce of gold is $36 In August 1971 – US President Richard Nixon abolished the dollar’s peg to gold. The dollar was no longer converted into gold at a fixed value, $35 per ounce, and gold could be traded at fluctuating market prices In December 1974 – For the first time in 40 years, American citizens were allowed to keep gold bullion and coins. In June 1980 – Gold rose to a record high of $850 per ounce, as investors turned to the precious metal amid rising inflation due to strong oil prices, Soviet intervention in Afghanistan, and the impact of the Iranian Revolution. From 1982 to 1988 – Fluctuations in global currency exchange rates, increasing concern about the US trade deficit and banking problems, and debt in Third World countries factor into gold fluctuations between $300 and $490. From 1989 to 1991 – this period witnessed conflict in the Arabian Gulf, the collapse of the Soviet Union, a decline in the role of gold as a safe haven, and weak economic growth in general throughout the world. From 1992 to 1996 – Gold remained relatively stable. In August 1999 – The price of gold fell to its lowest level at $251.70 when central banks began reducing their gold reserves and mining companies sold gold in the futures markets to protect them from the decline. In February 2003 – The price of gold rose after it was considered a safe haven in the period leading up to the war in Iraq. December 2003 – Gold surpassed $400, reaching levels at which it was last traded in 1988. Gold was increasingly purchased by investors as a hedging tool for their investment portfolios. November 2005 – Spot gold trading exceeded $500 for the first time since December 1987, when it reached $502.97. May 12, 2006 – Gold prices rose to $730 per ounce as investors turned to commodities as a result of the weak dollar, stable oil prices, and political tensions over Iran’s nuclear ambitions. On June 2, 2008 – Spot gold exceeded $850. March 13, 2008 – Trading in the benchmark gold contract exceeds $1000 for the first time in the US futures market. On March 17, 2008 – the price of spot gold reached its highest level at 1030.80 per ounce. On September 17, 2008 – the price of spot gold jumped nearly $90 per ounce – a single-day record, as investors sought a safe haven amid turmoil in the stock market. February 20, 2009 – Gold once again rose above $1,000 per ounce to reach $1,005.40 during the financial crisis. December 1, 2009 – Gold exceeds $1,200 per ounce for the first time as the dollar declines. On May 11, 2010 – Gold recorded a new high, exceeding $1,230 per ounce after investors resorted to gold as a safer investment haven with continued concerns about debt contagion in the Eurozone. September 17, 2010 – Gold reached a new record high exceeding 1,282 per ounce, driven by a weak dollar and economic uncertainty. September 2011 – The Eurozone debt crisis prompts investors to shift money into gold, causing its price to rise to 1,923 per ounce. From 2012 to 2015 – Gold continued to decline as fears of a full-blown banking crisis eased after 2011, with gold reaching $1,094 in August 2015. In June 2016 – Brexit and its unknown consequences fuel a gold rush. Gold rose to its highest level in two years at $1,358. June 2017 – Gold reaches a year-high of $1,294 before falling back to an average of $1,200. On August 3, 2020, gold rose to the highest level in its history at 2,075 per ounce, as concerns about the economic repercussions of the coronavirus outbreak prompted investors to rush towards safe havens. Gold prices witnessed a record high with the start of the Russian invasion of Ukraine, exceeding the threshold of $2,070 per ounce. Over the course of five days in March 2023, three small-to-mid-size U.S. banks failed, triggering a sharp decline in global bank stock prices and a swift response by regulators to prevent potential global contagion. Silicon Valley Bank (SVB) failed when a bank run was triggered after it sold its Treasury bond portfolio at a large loss, causing depositor concerns about the bank’s liquidity. Silvergate Bank and Signature Bank, both with significant exposure to cryptocurrency, failed in the midst of turbulence in that market. The escalation in Gaza directly affected gold, with prices rising by about $2007 per ounce, which reflects investors’ demand for safe havens. I hope you got some knowledge from this! if you have any questions let me know… Thanks

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